Insights on Trends, Challenges, and Opportunities for Buyers and Sellers
As we step into 2025, the real estate market in Chicago’s northwest suburbs offers both challenges and opportunities. Whether you’re buying or selling a home in areas like Arlington Heights, Buffalo Grove, Schaumburg, or Palatine, understanding the latest trends will help you navigate this dynamic market with confidence. Let’s take a closer look at what this year might bring for our local housing market.
Mortgage Rates Are Expected to Decline Slightly
After a few years of high mortgage rates, there’s some relief on the horizon. Experts predict rates will gradually drop to the 6%–7% range in 2025. While this isn’t the dramatic drop many buyers hoped for, it’s still an improvement that could bring more buyers back into the market.
For sellers in the northwest suburbs, this means you might see increased demand for your home as buyers take advantage of slightly lower rates. For buyers, this is a good time to start exploring your options—getting pre-approved and working with a knowledgeable agent can help you stay ahead of the competition.
Inventory Challenges Continue, but New Construction Offers Solutions
If you’ve been house-hunting in Arlington Heights, Mount Prospect, or Hoffman Estates, you’ve probably noticed that homes are selling quickly—and there aren’t enough to go around. The northwest suburbs are known for their strong schools, parks, and family-friendly amenities, making them highly desirable for buyers. However, with inventory well below the “healthy” six-month supply, finding the perfect home can take time.
The good news? Builders are stepping up to fill the gap. New construction communities in areas like Palatine and Buffalo Grove are offering attractive options for buyers. These homes often come with incentives like mortgage rate buydowns or closing cost assistance, making them a great choice if you’re open to new builds.
The Northwest Suburbs Are Still a Top Choice for Buyers
Suburbs in the northwest corner of Chicago remain some of the hottest markets for homebuyers. Arlington Heights, with its vibrant downtown and Metra access, continues to draw young professionals and families alike. Buffalo Grove’s top-rated schools and growing dining scene keep it in high demand, while Schaumburg remains a favorite for its shopping and job opportunities.
Palatine and Mount Prospect are also thriving, with their mix of charming neighborhoods and access to public transportation. These areas have seen steady home value growth, with prices expected to rise another 3–5% in 2025. If you’re selling, these trends work in your favor—but buyers should act fast when the right property comes along.
Key Advice for Buyers and Sellers in 2025
For Buyers:
- Be Prepared: Before starting your search, get pre-approved for a mortgage so you know your budget. Homes in the northwest suburbs sell fast, so being ready to make an offer is key.
- Consider New Construction: If inventory is tight, don’t overlook new-build homes. They’re a great option for buyers looking for modern layouts and move-in-ready properties.
- Stay Patient: With demand high, finding the right home may take a little longer, but the effort will be worth it.
For Sellers:
- Price It Right: Homes in the northwest suburbs are selling quickly—but only if they’re priced competitively. Work with an agent who knows the local market to set the right price.
- Make a Great First Impression: In this market, little things can make a big difference. Declutter, paint, or stage your home to stand out.
- Look Beyond the Numbers: The highest offer isn’t always the best. Your agent can help you evaluate the terms to ensure the deal aligns with your goals.
Changes in Real Estate Practices
2025 brings some shifts in how real estate transactions work. For example, buyers now need to sign agreements with their agents before touring homes, and commission structures have changed. These updates make it even more important to work with an agent who understands the local market and puts your needs first.
As Robyn Flowers of Berkshire Hathaway HomeServices explains, “It’s so important to find an agent who can guide you through these changes and provide the expertise you need.”
How I Can Help
I, along with my team at BHHS American Heritage, specialize in helping buyers and sellers in the northwest suburbs of Chicago, including Arlington Heights, Buffalo Grove, Palatine, Schaumburg, and more. Whether you’re a first-time buyer or a seasoned seller, we’re here to guide you every step of the way.
Have questions about the market? Curious about how these trends impact your plans? Reach out—I’d love to help you navigate this exciting market.
Let’s Make 2025 Your Year
IThe housing market in the northwest suburbs is full of opportunities, but it’s important to stay informed and prepared. Whether you’re ready to make a move or just want to learn more, let’s work together to make your real estate goals a reality.
Here’s to a successful year ahead in one of the best places to call home!
About Mari Van Meter
Mari Van Meter is an award-winning Realtor with Berkshire Hathaway HomeServices American Heritage, leading the Fly Home Dragonfly team. Specializing in digital and traditional marketing, Mari focuses on NW Suburban Chicago, especially Arlington Heights. She offers exclusive off-market properties and guarantees satisfaction for buyers and sellers.
Active in her community and at Countryside Church Unitarian Universalist in Palatine, Mari supports local businesses and champions diversity, equity, and inclusion.
For expert real estate guidance, contact Mari at 630-267-1808 or schedule a discovery call at calendly.com/marivanmeter/discovery-call.
